Suzanne Kappner

But even like a Chanel, which was untouchable for years,

Their sales were hurt.

There's a couple of reasons for that.

One, people stocked up on luxury goods during the pandemic.

They didn't need to buy a lot of stuff in the years following.

But these brands also were raising prices at an unprecedented rate.

Luxury goods weren't worth the money anymore.

The quality was slipping.

The prices were going up.

And it turned off a lot of shoppers, especially those Gen Z customers who were new to buying these brands.

They thought it's just not worth the money.

I'd rather spend my money on something else.

There's been a rebound now.

LVMH, I think in their last quarter, sales were in positive territory again.

So if you look at this giant store that Louis Vuitton just opened in the shape of a cruise ship in Shanghai, I think that is a glimpse into the future of luxury goods.

The brands are going to be more and more dominant and they want to control their destiny.

And the ones who are successful are brands

opening bigger stores, more showmanship, special perks for their wealthiest customers, private shopping.

The designers will do private events at their homes sometimes for top customers.

However, they can make the experience more and more special for their biggest spenders.